On the 21st, the won/dollar exchange rate started at 1,460 won due to concerns about mutual tariffs imposed by the United States.
According to the Seoul foreign exchange market on the 21st, the exchange rate opened at 1,466.5 won, an increase of 7.6 won from the previous trading day's weekly transaction closing price (as of 3:30 p.m.) of 1,458.9 won. This is the first time the exchange rate has started at around 1,460 won since the 4th (1,461 won).
The exchange rate rose as trade dispute risks resurfaced ahead of the mutual tariff imposition scheduled for next month. Scott Vissent, U.S. Secretary of the Treasury, noted that he would announce the mutual tariff rates by country on the 2nd of next month. South Korea, which has a large current account surplus in trade with the United States, also seems unlikely to be excluded from the tariff targets.
Political instability in Turkey is also stimulating risk-averse sentiment. In Turkey, large-scale protests erupted after Ekrem İmamoğlu, a potential presidential candidate and Istanbul mayor, was arrested the previous day. Consequently, the dollar/lira exchange rate exceeded 41 lira during trading, setting a new record high.
The expansion of domestic political uncertainty is also acting as a factor for the depreciation of the won. The Constitutional Court has not designated a date for the ruling for more than three weeks since concluding the impeachment trial of President Yoon Suk-yeol on the 25th of last month. As a result, the opposition's push for impeachment is intensifying, leading to ongoing political unrest.
Wijeong Hyeon, an economist at NH Futures, said, "Today, the won/dollar exchange rate is expected to fluctuate in the mid-1,460 won range," adding, "With stronger linkage to the yuan since March, upward pressure has increased, and the prolonged impeachment sentiment is also acting as a factor of instability."
Min Kyung-won, an economist at Woori Bank, said, "Today, the won/dollar exchange rate is expected to rise, reflecting the resurgence of trade dispute risks due to the impending mutual tariff increase in early April."